ASIC's new Victorian regional commissioner Warren Day
By | theage.com.au | 11 November
ASIC's new Victorian regional commissioner Warren Day. Picture: Justin McManus
It may flow from a well-known contact, be leaked by a harried whistleblower, or whispered over the phone by an anonymous source.
It might even be graciously shared over tea and scones at a country hall.
As it grapples with an internal restructure and the continuing fallout from the global financial crisis, the Australian Securities and Investments Commission is working on building a new network of contacts throughout regional Victoria, drawing on councils, chambers of commerce, rural Centrelink offices and even community groups such as the Country Women's Association.
The aim is to boost awareness about the "new ASIC" - as it has been dubbed by chairman Tony D'Aloisio - and, according to its newly appointed Victorian regional commissioner Warren Day, to gather information and intelligence about local issues.
Such a move, he hopes, may prevent something like the $80million collapse of Geelong's Chartwell Enterprises from happening again.
"Yes, we are a law enforcement agency, but it's ludicrous to think we should just wait for the wrong to occur and just deal with that," Mr Day says. "Part of it is preventing it in the first place."
Mr Day, 37, took on the new job last month after stints at the Tax Office, corporate lawyers Clayton Utz and five years at ASIC in what was - pre-restructure - known as the Enforcement Directorate. It has now become a series of "deterrence teams".
Mr Day joined ASIC in the middle of its action against property spruiker Henry Kaye. One of his first tasks was working on the landmark Stockford case, which related to fees charged by company administrators.
He has a special interest in the Chartwell case, having led ASIC's investigation when it blew up in April.
As Mr Day tells it, the Chartwell operation was unlicensed "by the looks of it", had collected "a serious amount of money" and was allowed to operate for several years, convincing hundreds of Geelong investors to hand over money in the process.
Could it have been prevented by ASIC, or at least stopped before it got so bad? Some in the Geelong community believe so, if news reports on the collapse are any evidence.
Mr Day suggests more open lines of communication may have helped.
"One of the quick and easy ways would be if I went out to speak with the chamber of commerce, the local council, local insolvency practitioners, lawyers and accountants in Geelong," Mr Day says.
"I would hope one of them would stick up their hand and say 'there are people raising large amounts of money, for some form of financial services activity in Geelong, and we're not quite sure about their bona fides'."
He is planning a series of trips to regional centres next year. Venues are being considered, itineraries tentatively shaped. Such trips are regular events in other states, but have been rare in Victoria. "We haven't done enough to go out, explain who we are and what we do, and what we can assist with," Mr Day says.
ASIC's previous Victorian regional commissioner was John Bligh, who was also, simultaneously, ASIC's chief executive (he remains in that role). It was, until recently, common for regional commissioners to hold two roles, a situation Mr D'Aloisio has reversed.
In a speech on Friday, Mr D'Aloisio spoke of the "expanded" role of the regional commissioners, providing assistance on local matters and a point of contact with the regulator.
It is all part of the "new ASIC", which, Mr Day says, aims to be "open and forward looking". This has been a common refrain from ASIC executives in recent months. Most recently, Mr D'Aloisio spoke on Friday of a "clearer" vision and priorities, and "key differences" between the "old and new ASIC".
Mr Day says the new ASIC would be "quite considered" about its actions. "This place is going to think carefully about the way it approaches a problem," he says. "Does it need to break out lawyers, guns and money? Maybe not. It's going to carefully consider what its options are before it acts."
The local ASIC office has a range of high-profile, high-pressure cases under way.
Mr Day says ASIC is "in fairly advanced stages" on its Chartwell investigations, after "recent" talks with the liquidator.
This month, it launched what is being described as a crucial "test case" on the legalities of naked short-selling, pressing five short-selling charges against Melbourne man Giovanni Spagnolo.
And, citing "public interest", it is suing accounting firm KPMG over audits performed on the books of failed developer Westpoint, as well as continuing class actions connected to the Westpoint collapse.
Add the plethora of national issues arising from the global financial crisis (short-selling, credit rating agencies) and its impending new role of regulating the entire consumer credit system, and it becomes clear just how busy the "new ASIC" is.
"There is (a lot going on), but there always is," Mr Day says. "I've been here for five years, it's never ever been boring."
First published by TheAge.com.au on November 11 2008
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